mukiha wrote:
@MaichBlack: I have been collecting the penalty (10%) right from the first month. I just got tired of this guy and I want him out.
@mukiha - I didn't mean a flat 10%. Ati the guy pays on the 25th - 20 days late - and you penalize him 10% same as if he would have paid on the 6th! No! In such a case, if he's late by a day he'll just decide to delay mpaka twenty something - It is 'just' 10% penalty either way!
This is how it works - 10% or 2k per day whichever is greater. Let's assume the rent is 35k. If he pays on the 6th - 3.5k on top, 7th - 4k [which is higher than 3.5k] on top, 8th - 6k on top,... 25th - 40k on top!!! Or you can simplify and have a penalty of
2k for everyday delayed!
Who do you think will take this rent payment maneno more seriously than the other one in such an arrangement? And this is already happening elsewhere as we speak. It is not a theoretical solution. If 5th is on a Sunday, and Friday is a holiday the fellow pays on Thursday 2nd and hands the deposit slip to you ASAP - bila kuambiwa na yeyote! Hapana mchezo.
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.